Explanation:

- Capital expenditure is money spent to acquire or improve a long-term asset, like machinery or vehicles. It gives benefits over several years.

- Revenue expenditure is spent on day-to-day operations, like repairs, salaries, or materials. It only benefits the current period.

- Deferred revenue expenditure refers to spending whose benefit lasts beyond one year but isn’t tied to acquiring a new asset, like heavy advertising to boost sales for a few years.

- Revenue receipt is money received in the normal course of business, such as sales income or interest.

The correct answer is: Option 3: Capital expenditure.

Because overhauling the engine to improve fuel efficiency increases the car’s future economic benefits.